BlackRock Build America Bond Trust review date extended to 2016

By Toni Weeks

San Luis Obispo, Calif., Nov. 7 - BlackRock Advisors, LLC announced that the board of trustees of the BlackRock Build America Bond Trust (Symbol: BBN) approved an extension of the trust's contingent review provision until Dec. 31, 2016.

The contingent review provision states that if, for any 24-month period ending on or prior to Dec. 31, 2014, there are no new issuances of Build America Bonds or other taxable municipal securities with interest payments subsidized by the U.S. government through direct-pay subsidies, the board would undertake an evaluation of potential actions with respect to the trust. Potential actions could include, among other things, changes to the trust's non-fundamental investment policies that govern the trust's permissible investments to broaden its primary investment focus to taxable municipal securities generally or the termination of the trust.

The Build America Bonds program expired at the end of December 2010, and no further securities meeting the criteria were issued after that, triggering the contingent review provision. On Nov. 12, 2012, the board approved an extension of the provision until on or before Dec. 31, 2013.

The board said it will again evaluate potential actions with respect to the trust on the new review date. It also said it will continue to monitor the trust on an ongoing basis.

BlackRock is an investment management firm based in New York.

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